Earlier I had wondered if anyone made money, so I was now wondering about the other stage of the prcoess.

I get the feeling sometimes that Bandcamp is musicians buying each other's stuff, circulating the money among themselves. Maybe not.

Not exactly. Independent (or even mainstream) artists are not the only ones using Bandcamp; some labels are, too: Three Lobed Recordings, Morctapes, Carbon Records, Chrome Peeler Records, Electric Cowbell Records, and ugEXPLODE, all have some awesome stuff from their catalog up on Bandcamp. In adittion, most of the positive comments posted on bandcamp's testimonials page come from music fans or users rather than from the artists themselves.